The background description provided herein is for the purpose of generally presenting the context of the disclosure. Work of the presently named inventors, to the extent it is described in this background section, as well as aspects of the description that may not otherwise qualify as prior art at the time of filing, are neither expressly nor impliedly admitted as prior art against the present disclosure.
Insurance customers typically buy a policy for a fixed amount of time and for particular coverage. For example, insurance customers apply for insurance by submitting to an evaluation of past or contemporary vehicle, driver, and other conditions and behavior. The insurance company then evaluates these conditions to determine a risk of loss for the insurance company. The customer then pays a policy premium fee to bind the insurance for a period of time, typically six months, which is based on the determined risk of loss. A higher fee is based on a higher risk of loss, and vice-versa. If, during the insured time period, the customer experiences no loss incidents, the customer may have an opportunity to renew the insurance policy at a lower premium. Thus, any benefit for the customer in reducing the possibility of loss incidents (i.e., engaging in risk-reducing behavior) occurs upon renewing the policy.